The international steel market can again become the key China rejuvenation

As a big country of iron and steel, China has always had a great influence in the world. Since March, the domestic steel market has gone crazy, which has attracted more and more attention all over the world. I believe that at the moment, the changes in China’s steel will affect the trend of global steel, not too much. Earlier, because of China’s serious overcapacity, leading to domestic steel prices continue to fall, foreign steel prices are all the way to follow the decline. Steel prices in March 2016 quickly opened prelude to pull up, foreign steel prices are to pull up, pre twist “ decadent ”.
In March, the overall temperature of the international steel market, North America, Europe, Asia, steel prices were significantly higher.
Although China rising steel prices will have a certain impact on foreign steel prices, but the external steel prices rising at the same time for the following reasons: the United States long products market will remain strong, because of steel prices and imported material prices, local prices continue to chase high wire. Although demand has returned to some extent, the actual market demand may not be able to bear such high prices, so in the long run, there is still a risk in the market and it remains to be seen whether sustained price increases can be accepted. European long board market continues to rise, with the weather warming, local demand release, coupled with the raw material prices continue to pull up, the European long wood market spring festival. The Asian long products market pull up sharply, because of the good news constantly, constantly pulling the domestic market in March prices, export prices are also rising, the steel export price at $330 \/ ton (FOB), billet export price at $310 \/ ton (FOB). Japan’s leading steel rebar factory price increase in April, as demand continues to warm, most businesses are optimistic about the market outlook, that prices are still up space.
Recently the price of steel Chinese again into the frequent pattern of shock, but also with the April Tangshan World Horticultural Exposition approaching, Hebei area will be implemented to limit production, when steel prices will have 30% to 50% different time limit production, the current domestic steel prices is a major positive. Although the steel price has been hype overdraft, but through the 2015 record low, national steel inventory is low and relatively concentrated, which to some extent to the continuing high price of the formation of a good foundation. In addition, both domestic and foreign markets, starting in March each year, are the new round of demand cycle, which rose steel prices, the formation of just need to support.
For the later period, first of all, raw materials, CVRD due to environmental licensing problems, or forced to cut production of 1 tons, production cuts or will appear in the next few months. This means that the Port ore shipments or growth is still slow, conducive to a strong price or decline narrowed. On the other hand, at present, China’s domestic steel prices rose sharply, to some extent reduced the amount of exports, but with foreign prices higher, the market or will continue to maintain constant trading. Overall, with the overall temperature of demand, the future market structure will be more “ &rdquo, although the current market amidst the winds of change; the pros and cons of both, but the advantage is not China steel can obliterate the future, steel prices will not fall again because of the constant China exports, but should be in constant demand shock recovery rose. But as mentioned earlier, the pros and cons of both, 2016 steel steel demand relative to the previous year, certainly shrinking, increasing steel prices continue to go after high risk to a certain extent. But the risk and opportunity are together, the reasonable adjustment space, the solid demand foundation, is the price continues to go high the kingly way.

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